Its story began at the 1966 Paris Motor Show when Carlo Lavezzari introduced the prototype of a small car. It soon caught the attention of French businessman Henri William, who commissioned the series production of the Lawil, an acronym joining surnames Lavellari and William.
Varzina, in turn, is named after the city of Varzi, in Italy, where one of its factories was located. The first model was designed by Carrozzeria Scattolini and equipped with the Innocenti Lambretta 125 cc engine. It was available in sedan, convertible, and break van versions.
At that time, Italian law stated that microcars were not allowed to have more than three wheels. Even though the Varzina had four wheels, it was the smallest car on the Italian market. It did not exceed 1.78 m in length, much smaller than a Smart.
Over time, the original 125 cc Lambretta engine was replaced by a 175 cc and then a 250 cc BCB, and the 8-inch wheels were replaced by new 10-inch wheels.
Despite not very successful in Italy, the S3 did well in other markets, which guaranteed its production for more than two decades.
